Woonsocket Delegation Still Won’t Support Tax


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With the legislative session coming to a close, it seems that Woonsocket will not get permission from the General Assembly to assess the supplemental tax bill that local and state officials say is necessary to keep the financially struggling city out of receivership.

UPDATE: House Speaker Gordon Fox just said the House may vote on the supplemental tax with or without the support of the Woonsocket delegation. When I asked him, he said, “I’m not sure yet.”

In a meeting between Rosemary Booth Gallogly, the state director of revenue, and the Woonsocket delegation to the House of Representatives that ended at midnight last night, the delegation said it would only support the supplemental tax if the state agreed to a list of demands in exchange for their support. House leadership has said it would not move on the bill without the support of the delegation.

Today, Booth Gallogly said the state couldn’t agree to their demands that included: a single-digit supplemental tax that would not be included in next year’s tax allocation, suspension of a sewer treatment plant construction project, more state education aid and that the mayor and council be removed from the budget commission.

“What they are asking isn’t really acceptable,” Booth Gallogly said, noting that state law requires elected officials to be on the budget commission and there are federal requirements for the sewage treatment plant project. “I still hope the General Assembly will consider approval of the supplemental tax.”

In fact, she said some of the requests made by the delegation were beyond the state’s control to grant at this point in the legislative session. When I asked her if the delegation was negotiating in good faith, here’s what she said:

Indeed, it seems they weren’t. After learning – from reporters – that the governor’s office would not agree to their terms, they amended their offer and said they would support the supplemental tax if the state agreed to stop the sewage treatment plant project and keep the tax under double digits. Prior to that, both said it would be irresponsible to support the supplemental tax if all five demands were not met.

Chair of the state appointed budget commission said earlier today that the city might have to employ a receiver if the supplemental tax is not passed.

“If there is no supplemental tax increase you have to wonder if there is anything we can do at all,” he said. “At that point, a receiver would have a lot more authority.”

On May 22, both Baldelli-Hunt and Brien said they preferred a receiver to a budget commission.

“A receiver has the leverage to make the adjustments that need to be made,” Baldelli-Hunt said after addressing the House Finance Committee about the supplemental tax increase. “I don’t want a supplemental tax bill to stand in the way of getting a solid plan in place.”

Brien added, “I think a receiver is ultimately what we need to do.”

On the same day, Baldelli-Hunt said her position on the city’s finances is unrelated to speculation that she would like to run for mayor, saying, “This has nothing to do with politics.”

Progress Report: Austerity Gone Awry in Woonsocket


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The most amazing story of the end of the legislative session is that two people – Woonsocket Reps. Lisa Baldelli-Hunt and Jon Brien – are able to thwart the will of the mayor, city council and state appointed budget commission and block a tax increase that would save the city from imminent financial ruin. This may literally be the most egregious example of conservative lawmakers opposing spending increases at the expense of their constituents the era of austerity has ever known. Sadly, the General Assembly ought to save Woonsocket from its elected officials.

Speaking of Woonsocket, add Jim Baron to the list of journalists now talking about how Rhode Island isn’t as liberal as you might think.

Has a deal been reached on the Homeless Bill of Rights? The House Judiciary Committee plans to vote on the bill today.

Mitt Romney’s plan to grow the economy: fire police officers, teachers and fire fighters. It’s actually a plan to shrink the economy so that rich people can hold on to more of their money.

Chafee looks to hire a lawyer for the 38 Studios debacle … this thing is far from over, and the governor might not be the only local politician to require counsel…

Progress Report: Legislative Ninth Inning, Buddy Cianci, Obama, Pot Policy Homelessness and Buying Happiness


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The legislative session is slated to end on Tuesday and if it does without the General Assembly approving a supplemental tax bill for Woonsocket residents the struggling city will probably have to file for bankruptcy … don’t worry, though, this isn’t a surprise to local legislators Jon Brien and Lisa Baldelli-Hunt, who won’t support the measure. Indeed, it’s the reason. Brien, an ALEC board member, is employing the old Grover Norquist approach to governance: shrink it until you can drown it in a bathtub. Baldelli-Hunt, on the other hand, covets the mayor’s office and thinks she can raise her stock by lowering the current mayor’s. In both cases, it is morally reprehensible to play such political games with the financial security of the city.

Also as the session winds down, Ted Nesi calls out Teresa Paiva Weed for standing in the way of a new public records law and a local version of a disclose law. Public records laws are uber-important to us journalists and by extension to the public.Compared to other states I’ve worked in – Oregon and Vermont, to name two – Rhode Island’s public records rules are repressive and seemingly designed to oppose open government rather than foster it.

The public records legislation is by no stretch the only bill that gets quietly killed by leadership … While “Paiva Weed’s chamber” gets a lot of grief for blocking marriage equality, Speaker Gordon Fox and House Finance Committee Chair Helio Melo both go virtually unnoticed for blocking income tax reform, even though there is more than enough evidence to show that tax cuts not only don’t benefited the local economy, they hurt it.

Speaking of public policy that is bad for the public, here’s to the Projo editorial board for calling out Buddy Cianci as being a big reason for Providence being in such financial straits as it was his administration that allowed for 6 percent annual pension increases. It’s been odd, to say the least, to hear Cianci call on Carcieri to speak up on 38 Studios while he’s never really addressed his own role in Providence’s pension mess.

The national media, or at least the National Journal, has picked up on a troubling scenario for Democrats this November that percolated up during Netroots here in Providence: progressives may not rally around Obama in 2012 the way they did in 2008. Stay tuned…

Another narrative to be amplified as a result of Netroots: Rhode Island isn’t nearly as liberal as local conservatives would have us believe.

One may argue that an exception to this rule might be the legislature’s recent relaxing of rules regulating marijuana … but as David Klepper of the Associated Press reports this really isn’t all that out of step with the rest of the country.

The US Commission on Civil Rights is opening an investigation into the racial bias of Stand Your Ground Laws.

Even in bastions of liberalism – like my old stomping grounds of Ashland, Oregon – cities across the country are cracking down on sleeping outside … the whole effort amounts to criminalizing homelessness.

Cars kill. And former ethicist Randy Cohen isn’t talking about accidents.

Who says money can’t buy happiness … in fact a new study shows the affluent are trying to purchase it more than ever

As Legislature Spends Money, Cities Feel Pinch


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Woonsocket High School (photo courtesy of Woonsocket School District)
Woonsocket High School (photo courtesy of Woonsocket School District)
Woonsocket High School (photo courtesy of Woonsocket School District)

I see from the Providence Journal that the new state-appointed budget commission has decided that the city council and Mayor Fontaine were exactly right to request permission from the state to impose a supplemental tax increase on their citizens.

Last week, after an impassioned speech by Rep. Lisa Baldelli-Hunt, the House rejected Woonsocket’s request.  This week, the state-appointed budget commission asked that the request be reconsidered.

For some reason state legislators seem to get this idea in their heads that though they were elected on promises of fiscal responsibility, and intend to carry through on them, city council members and mayors get elected by promising to spend like drunken sailors.

This is not only bizarre, but entirely backwards.

By almost any measurement you care to make, it’s the state that has been the fiscal problem child over the past couple of decades, not the cities and towns. The difference is that the state has power over the cities and towns: they have more money, and stand uphill in a legal and constitutional sense, too.  But the General Assembly continues to resist the appeals of the duly elected leaders of our cities and towns, feeling that they know better.

This year, Governor Chafee infuriated organized labor by offering several “tools” to municipal officials to help them control pension costs.  I tend to agree with the labor folks here, that the state should stay out of these issues, and that passing state laws to trump local bargaining agreements is only a good idea in a very limited short-term sense.  But the Assembly has shown no interest in believing Mayors when they complain about financial stress, so if you don’t want more bankrupt cities, what should you do?  It seems to me that Chafee wasn’t so much sticking his thumb in Labor’s eye as making a realistic assessment of the Assembly and acting accordingly.

Or maybe not.  It appears that the Assembly leadership isn’t interested in Chafee’s suggestions, and pretty much none of them were put into the House budget.  This reminds me of the time in 2005 when the Carcieri administration came up with some personnel reforms that might have saved around $32 million.  They were the usual sort of benefit cuts, limits on vacation time and sick time and an end to “statutory status” which is a kind of state employee tenure.

Whatever you think about the wisdom of those reforms, it’s hard to praise the Assembly for what happened next.  The legislature rejected the reforms — but left the $32 million in savings in the budget.  So the administration was faced with finding $32 million in savings, but without the law changes to do it.  How, exactly was that responsible?

So now the Assembly is poised to do the exact same thing, and act to increase the pressure on cities and towns — not enough money to support their commitments, but no relief from those commitments, either.  The only difference this year from previous years is that now we have some Assembly appointees joining the Mayors in the hot seat, begging that they not be put in the same position as the Mayor and City Council of Woonsocket.  Mayor Leo Fontaine and the Council have failed to keep Woonsocket solvent, but a new budget commission won’t do any better unless the conditions change.  Right now, the only way the conditions will change is through the bankruptcy court, so mark your calendars.  I simply can’t agree with the people who imagine that dragging each of our cities into bankruptcy is a sensible strategy — in either the long or short term — for our state.

The Assembly can act here.  Sensible options are available, that take into account the actual realities facing our cities.  But will it?  So far, it does not appear likely.

RI Progress Report: Schilling Speaks, Woonsocket Asks for State Help, Senator Kerry’s Yacht Back in Newport


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The Providence Journal wins the exclusive first interview with Curt Schilling … and guess what: 38 Studios’ collapse wasn’t his fault, it was Chafee’s fault for scaring away investors by telling the public that the company didn’t have any money. If only Chafee could have scared away the state from investing way back when….

And, finally, an editorial on 38 Studios from the ProJo.

It seems as if smaller companies that received small loan guarantees from the state are faring much better than did 38 Studios and its huge $75 million loan guarantee, reports PBN.

Meanwhile, the spat between Gov. Chafee and Gina Raimondo continued on Friday with Chafee telling me Raimondo was the only general officer not to make it to a briefing on 38 Studios. Joy Fox, a spokesperson for Raimondo, told Ted Nesi that the treasurer didn’t know about the meeting but a spokesperson for the governor said she worked with Raimondo’s office on scheduling the meeting.

Not confident the General Assembly will approve a supplemental tax increase, the Woonsocket City Council asked the state to appoint a budget commission on Sunday night … something tells us this story is about to make much bigger headlines. Stay tuned.

John Kerry’s controversial yacht was back in Newport recently, according to the Boston Herald … but no word on whether Rhode Island gave the Massachusetts senator a loan guarantee to dock it here.

Picking up on Tom Sgouros’ theme from last week that conservatives aren’t necessarily fiscally responsible, Paul Krugman calls Mitt Romney, Paul Ryan and Chris Christie “fake deficit hawks.”

 

Woonsocket Legislators Call for Fiscal Receiver


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Reps Lisa Baldelli-Hunt and Jon Brien talk to Woonsocket's finance director Tuesday after a vote on a supplemtenal tax increase for the struggling city.

Woonsocket legislators would prefer a receiver step in and help right the struggling city’s financial problems rather than raise property taxes, according to a letter from them to Mayor Leo Fontaine.

“Significant and immediate structural reforms are needed to avert a financial crisis in our city and we respectfully request that as a first priority, our city’s leadership should request that a receiver be appointed,” said a letter signed by Sen Marc Cote and Reps Lisa Baldelli-Hunt, Jon Brien and Bob Phillips. The letter was also sent to Gov. Chafee, Treasurer Raimondo and legislative leadership.

While Reps. Baldelli-Hunt, Brien and Phillips supported the supplemental tax increase for their community yesterday before the House Finance Committee voted o the matter, they said it would be wiser to have a state-appointed receiver negotiate bills and contracts than tax residents more.

Baldelli-Hunt said she has discussed as much with state Director of Revenue Rosemary Booth Gallogly, who has been working closely with struggling cities in the state.

“A receiver has the leverage to make the adjustments that need to be made,” Baldelli-Hunt said yesterday after addressing the House Finance Committee about the supplemental tax increase. “I don’t want a supplemental tax bill to stand in the way of getting a solid plan in place.”

Baldelli-Hunt said she does not want Woonsocket to go into bankruptcy and feels that a receiver can help the cash-strapped city avoid that by renegotiating contracts with unions and implementing other cost-saving measures. She added that a receiver is a better option than a budget commission because it is easier for one person to make bold decisions than a five-member board.

Brien agreed, saying, “I think a receiver is ultimately what we need to do.” He also plans to submit legislation as early as today that would allow Woonsocket to borrow money from its pension fund to bridge its budget deficit. He said that would be a better option than adding an additional tax burden on residents.

Mayor Leo Fontaine also said the city should consider utilizing a receiver, but not before it implements to supplemental tax increase. “We can always go back to a budget commission or a receiver but we can’t go back to [a supplemental tax increase],” he said.

The House Finance Committee approved the supplemental tax increase yesterday after not acting on the matter for a week. Some legislators said the committee was waiting to vote until it had the endorsement of the Woonsocket delegation, which didn’t happen formally until yesterday. “We’ve been hearing different stories over the course of the week, “said Rep. Larry Ehrhardt, a conservative Republican from North Kingstown. “Sometimes they were for it and sometimes they were against it.”

Some said Baldelli-Hunt was using the issue to bolster her credentials against Fontaine in case she runs for mayor of Woonsocket, but she denied the allegation saying, “This has nothing to do with politics.”

Fontaine confirmed he had heard such rumors as well. “I hear the scuttlebut,” he said. “but I’d like to think that we’re all acting in the best interest of the people.”

EG Wants iPads, CF Wants Enough Textbooks


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It’s another sign of the increasing education disparity between Rhode Island’s affluent suburban towns and its economically challenged inner cities: the East Greenwich School Committee is considering getting every student at the high school an iPad, while in Central Falls, Pawtucket and Woonsocket students sometimes share textbooks, taking turns getting to take them home for assignments.

“I don’t disagree with you that there should be a better statewide technology funding program,” said East Greenwich School Committee Chairwoman Deidre Gifford.

Elliot Krieger, a spokesperson for the state Department of Education agreed. In a statement he said, “We are aware that at present not all students have equal access to technology; one goal of the Funding Formula for aid to education is to ensure that all school districts receive adequate funding to educate all students. The formula is phasing in over a ten-year span.”

EG Supt. Victor Mercurio pitched the idea to the school committee last week after a visit to a school district in Burlington, VT that had successfully used iPads as educational tools. “We tried to show the school committee that students would engage more deeply than they would with a book,” Mercurio told me.

The high school, recently named to Newsweek’s list of top 1,000 in the nation, already has about 60 iPads for students to use and the middle school has about 20, Mercurio said.

But in inner-city school districts such as Central Falls, Woonsocket and Pawtucket they still rely on the old-fashioned textbooks. And sometimes there aren’t enough of those to go around.

Central Falls Supt. Fran Gallo said in some instances students from multiple classes will share the same text books. Teachers, she said, will stagger homework assignments so that each class can take the textbooks home at different times during the semester.

“Is that an ideal situation, no,” said Anna Cano Morales, the chairwoman of the board of trustees, the state-appointed school committee for Central Falls. “But … it allows us to be a little more creative in how we teach our students.”

Woonsocket and Pawtucket implement similar textbook-sharing programs, said Stephen Robinson, an education lawyer who represents all three districts as well as Portsmouth and Tiverton.

“I would suggest to you that this is the poster child for why what Commissioner Gist calls the best funding formula in the world is a fraud,” he said. “If it were equitable, every school district could, if not give every students an iPad, at least give them each textbooks.”

While RIDE says it is attempting to remedy such inequities through the new funding formula, Woonsocket and Pawtucket, represented by Robinson, are suing the state. Robinson said ten years is too long to fix the funding formula that RIDE has already said didn’t adequately compensate those and other communities.

“The problem with the funding formula,” said Robinson, “is it’s not fair to the poor urban districts. The reality is Woonsocket does not have fiscal capacity to fund [education].”

Central Falls has not had the fiscal capacity to fund education since the early 1990’s when the state was forced to take over. Meanwhile, in upscale East Greenwich, the school committee is also considering offering Chinese and Arabic classes. Across the Bay in equally affluent Barrington, the school committee there is considering selling slots at its high performing public schools to those who can afford to pay tuition.

While districts like East Greenwich and Barrington, where property taxes can support high quality education, thrive and adapt and even perhaps profit, schools in the inner cities in between the suburbs aren’t making ends meet. Providence has closed schools, and in Central Falls schools are under state control. Woonsocket identified a $10 million deficit in its school budget.

RI Progress Report: Who Still Supports Carcieri?


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Former Gov. Don Carcieri seems to have lost all his political allies because of his historic blunder in giving his friend and political ally curt Schilling $75 million to make a video game in Rhode Island. It will be interesting to see if Brendan Doherty and Mitt Romney – the two candidates Carcieri is really pushing for this cycle – remain loyal to him…

The issue with Rhode Island’s instantly-infamously loan guarantee program is not that the public sector is helping the private sector, it’s that former Carcieri and former EDC chief Keith Stokes made a monumentally awful decision to give one company a huge sum of taxpayer money, not even to mention that it was a video game company run by an ex-baseball player.

Even ask House Minority Leader Brian Newberry, a fiscal conservative who told the Projo, he eventually voted for the loan program because he assumed the addition $75 million would be spread out around the free market. “Nobody anticipated the EDC would give away the store to one company,” he told the Projo. “Who does that?”

Scott MacKay of RIPR has a great op-ed today on how Gov. Chafee has to again clean up a mess left by Carcieri.

Massachusetts has better funded public schools than Rhode Island, they beat us to the casino punch and knew better than us to avoid financing Schilling’s pipe dream … here’s another way our neighbor to the northeast is serving its citizenry better.

File this one under education inequality in the Ocean State: At high schools in Woonsocket, Central Falls and Pawtucket students sometimes have to share textbooks because there aren’t enough to go around, while in East Greenwich the school committee is considering getting every high school student an iPad.

Did you know the Southside Community Land Trust operates about 40 community gardens on vacant lots all over the city? How cool is that!

Good for Congressman David Cicilline for taking issue with some of the often-oversimplified opinions of Projo columnist Ed Achorn … we keep wondering how Achorn will manage to blame the 38 Studios debacle on Stephen Iannazzi and public sector unions (just wait, it’ll probably happen!).

Congrats to Maureen Martin, who GoLocal Prov honors as a “Power Player” this week.

RI Progress Report: URI Profs File Suit, West Warwick, Tar Heels on Marriage Equality, Doherty and US Chamber


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URI professors have filed a lawsuit against the state saying the Board of Governors for Higher Education broke the law when they declined to ratify a contract they had already agreed to after Gov. Chafee weighed in on the matter. Profs may win in court, but in order to win in the court of public opinion they will have to make the case that the state isn’t adequately funding the state’s premier university.

Ted Nesi writes an excellent story about West Warwick’s budget problems. What he doesn’t mention is that the state cut some $6.25 million from the struggling city in the last three budget cycles.

The Projo editorial board writes that the socialists electoral victory in Europe “demonstrated that a slim majority of the French (and a larger majority of the Europeans in general) want more public spending and other actions to stimulate the economy and cut unemployment.” We’ll see if they draw the same conclusion about the United States this October.

It’ll be hard for Brendan Doherty to parse himself as a moderate when the uber-conservative U.S. Chamber of Commerce is running ads in Rhode Island on his behalf.

North Carolina voters approved a constitutional amendment that bans all forms of same sex legal relationship rights. Congrats, Tar Heel state, your intolerance is unmatched.

And in Indiana, Richard Mourdock, a Tea Party candidate who beat longtime Senate moderate Richard Lugar in a primary yesterday, said he doesn’t believe in bipartisanship.

Conservative Rep. Jon Brien says he’ll support a supplemental tax increase for Woonsocket.

If you’re surprised that Rhode Island gives away $1.6 billion in tax breaks, you haven’t been reading RI Future. We reported this yesterday.

RI Progress Report: Dan Reilly, Central Falls, Catholics


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All best to the Central Falls Charter Commission. Here’s hoping Councilman James Diossa is right on when he tells the Projo, “The charter commission is going to bring the community out and get them engaged and involved.”

Portsmouth Rep. Dan Reilly’s parents, who are the biggest income tax evaders in the state, are not claiming to the state Supreme Court that they don’t owe $1.3 million in back taxes, they are simply arguing that the state didn’t ask for it soon enough and thus kicks in the statute of limitations. Talk about being embarrassed by your parents!

RINP estimated there were about 1,000 people at the rally for the Woonsocket cross. Mayor Leo Fontaine guessed there were 1,500 people. John DePetro, who never met a fact he couldn’t bend to suit his own purposes, said there were 2,000 people there. Either way, the establishment clause of the Constitution is not a popularity contest.

And speaking of organized religion … Rhode Island is no longer the most Catholic state. That dubious distinction now belongs to Massachusetts.

Here’s a list of ALEC’s top 5 anti-environment pieces of model legislation.

Is the sailor kissing a woman at the end of World War II in the famous Life magazine picture a Rhode Islander?

Turns out Mitt Romney didn’t want his foreign policy communications guy to talk. Why? Because he’s gay.

Politifact: it’s true that URI has the second lowest paid public college professors in the region.

 

The Not-So-Curious Divide


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A few days ago, David Scharfenberg of the Phoenix wrote a blog post entitled “The Curious Divide” noticing the distinct difference between Rhode Island’s liberal federal delegation and its state legislature, which skews moderate (and as one reader has pointed out, significantly to the right of most Democratic state legislatures, with some Democrats more conservative than some Republicans). Mr. Scharfenberg explains his view:

the split vote – elect a moderate local rep and a liberal federal one – seems to perfectly capture Rhode Island’s deep unease with its own politics: it is a liberal state uncomfortable with its liberalism.

I’d agree, but I don’t think it’s exactly right. Take the last election. In the race for Governor, Lincoln Chafee’s advantage mainly came from two places; the cities of Providence and Pawtucket and a group I like to think of as “Bay Progressives” (though there were probably liberal Republicans in there as well). These are also places where David Cicilline did extremely well against John Loughlin II, though he was weaker in the Narragansett Bay communities than Mr. Chafee. Mr. Cicilline’s advantage in Providence and Pawtucket overcame the lion’s share of his deficits elsewhere and pushed him to victory. These are also the same places where David Segal performed well in the CD1 Democratic primary.

Basically, the central urban areas, with their minority and working class populations, tend to be strongest for liberal voters, and they can push elections to liberal candidates. The bay area also attracts large concentrations of well-off, highly-educated elites (as do the well-off portions of Providence and Pawtucket). They tend to be strong on green issues and liberal on social issues. This Urban-Bay coalition is a key part of the progressives who dominate federal politics. Their enthusiasm can make or break a liberal candidate running for statewide or federal office.

This isn’t to say there aren’t urban progressives in Newport or Woonsocket or North Providence, nor that there aren’t equally important progressives in the more woodland areas of South County. But their margins of support are less overwhelming, and there are fewer of them. Providence tends to make up the deficit.

Charles R. Brayton, founder of Rhode Island's machine politics

There’s the actual tension. It’s not that the state is uncomfortable with its liberalism, it’s the historical tension that’s existed between urban core and country since the Industrial Revolution poured Italian, Irish, Portuguese, and Quebecois into the cities. It’s where Rhode Island’s corrupt political machine politics got their foundation; then under the control of Republican “Blind Boss” Charles Brayton, the countryside prevented the working poor and immigrants in Rhode Island’s cities from getting the amount of political representation they deserved. This is not a secret, the General Assembly’s own history makes this pretty clear (and is a pretty amazing narrative of that body until about 1994).

Now, of course, Providence’s representation is roughly proportionate to its population; but that tension lingers. The well-off countryside can easily view the urban areas as basically a charity basket-case. No wonder they vote for more conservative legislatures. The problem is exacerbated by the largely assimilated white countryside and the as-yet unassimilated immigrant and second-generation Americans who inhabit the cities.

Taken collectively, our state skews liberal; both because it actually is (even our Republicans are more liberal than their peers in other states), but also because the cities have a powerful voting constituency. In the General Assembly, the towns and villages have more distinct representation, the conservative ones can largely counterbalance the liberalism of the urban core. Their own progressives can be outvoted by the larger numbers of conservative voters. When progressives and liberals unite across the state, they’re a very powerful constituency.

And that’s why I think our federal politicians are so different from our state politicians.

P.S. This analysis has missed moderates, and that’s largely because moderates don’t pull the Assembly one way or the other.

Chafee, Brien Explain Need for Municipal Aid Bills


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Gov. Chafee and Rep. Jon Brien, chairman of the House Municipal Government Committee, kicked off the House Finance Committee meeting by addressing the need to pass the governor’s municipal aid package.

Brien, from Woonsocket, has a particular interest in the bills’ passage as they would greatly benefit his community.

In this video, they both explain why the bills are so important to the poorest communities in Rhode Island.

RI Progress Report: ALEC, Knuckleheads, ‘Legislation Last’


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The Projo editorial board weighs in on the ALEC controversy. Though they say nothing about the issue on a local level, they write: “The American Legislative Exchange Council (ALEC) offers a case study in how corporate money can be used to distort democracy.

Ted Nesi also chimes in saying that, despite his claims to the contrary, Rep. Jon Brien has in fact put forward ALEC model legislation.

And Ian Donnis writes that it’s one more piece of evidence that Rhode Island Democrats aren’t as liberal as some would claim.

WPRO has taken to defending a cross on a war memorial in Woonsocket and Mayor Leo Fontaine called the group leading the fight against the religious symbol on public property “knuckleheads.” There are sure to be no shortage of knuckleheads in this controversy as John DePetro has “volunteered to emcee” an upcoming rally and it’s hard to argue that those who don’t want a religious symbol on public property are more knuckle-headed than a mayor who insults people based on their beliefs.

I’ve never seen the State House as jam-packed as it was yesterday for a rally to restore cuts made to services for those with developmental disabilities.

There’s a great feud going on between Gina Raimondo and Gov. Linc Chafee over municipal pension fixes and Ed Fitzpatrick quotes the treasurer as passive aggressively saying, “It’s great the governor is continuing the work I started a year ago around pensions, and we absolutely can’t wait. That is why I’m spending time working hand-in-hand with municipal leaders with pension problems.” Okay, Gina … why don’t you try working with the governor, like he did with you? And keep in mind, for as much credit as you’ve received for your work on pension reform, having the weight of the governor’s office behind you was no small thing, as it’s a much bigger deal than the treasurer’s office. But she knows that…

RI Progress Report: Patriot’s Day/ Buffett Rule Edition


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Mayors Don Grebien, of Pawtucket, and Leo Fontaine, of Woonsocket, write an op/ed together in today’s Projo about their lawsuit against the state that contends that RIDE should move quicker to bridge the giant funding gap that exists between the affluent suburbs and the poorer inner cities in Rhode Island. It’s an issue that we’ve covered at length (see here and here) and one that not only explains why RI public schools as a whole don’t perform better, but also why the state in general doesn’t as well.

In a smart move that plays to the state’s natural advantages, Rhode Island is using the arts as an economic engine.

“Let’s be clear: State socialism created the suburbs. That migration – of educated, middle class workers away from the cities and mill villages – limited tax revenues and job opportunities in city centers across the state.” – Daniel Lawlor.

Why is Gina Raimondo trying to undercut Gov. Chafee’s efforts to help out struggling cities and towns? Here’s why.

If Anthony Gemma took his candidacy for Congress more seriously so would the media. But, then again, if he wasn’t such a joke, neither would be his campaign.

It’s Marathon Monday in Massachusetts today, when the Red Sox play their annual 11 am home game in conjunction with the Boston Marathon, but it’s also Patriot’s Day, marking the anniversary of the Battle of Lexington and Concord, the first actual military skirmish of the American Revolution, which Ralph Waldo Emerson dubbed “the shot heard ’round the world.”

It’s also the day the Senate is slated to take its first vote on the Buffett Rule … check out our coverage here.

This page may be updated throughout the day. Click HERE for an archive of the RI Progress Report.

Sen. Crowley vs. Bob Flanders on Bankruptcy’s Benefits


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Bob Flanders, the receiver for Central Falls, and Elizabeth Crowley, a state senator from Central Falls, are both offering Woonsocket advice on whether or not to pursue bankruptcy. Whose advice should Woonsocket put more stock in? Let’s compare…

Crowley has to live with the effects of bankruptcy. Flanders doesn’t even show up for public meetings in Central Falls, and will get paid more than a third of a million dollars because of bankruptcy.

Crowley went to Central Falls High School, and worked for 40 years there as a city clerk. Flanders went to Harvard Law School, lives in East Greenwich and I’ll bet had never been to Central Falls before becoming its receiver.

Crowley has said bankruptcy has been bad for Central Falls’ morale. Flanders told the Projo “it’s not a mark of shame.” But he also made some pretty pointed jokes about it at the Follies, for which he was roundly criticized.

Crowley said Central Falls lost its public libraries and community center because of bankruptcy. In East Greenwich, where Flanders raised his family, the school committee recently decided to spend $1 million renovating its school library. Oh yeah, about a third of that project will be paid for by the state. In 2010, East Greenwich renovated a historic gym into a community center for $3 million.

Woonsocket may indeed decide that bankruptcy is the best option for it to right its fiscal issues. But it would be wise to consider Crowley’s perspective on it more than Flanders. Doing otherwise would be like asking the fox, rather than the farmer, for advice on protecting the hen house.

RI Progress Report: Tax Increases in Woonsocket, Graduation Rates Drop and Lou Raptakis to Run for Old Seat


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Woonsocket High School (photo courtesy of Woonsocket School District)

What’s the plan to fix budget problems in Woonsocket? A special 13 percent supplemental tax increase this spring. But here’s the problem with that plan. According to the Projo: “the special assessment will cost the average homeowner about $350 in a city where the median family income is about $770 a week.”

— Lou Raptakis, a former state senator, tells East Greenwich Patch that he is going to run for his old seat. Raptakis ran for Secretary of State two years ago and very conservative Glen Shibley ended up winning his seat. EG Patch also reports that Peter DiSimmone, of Narragansett, plans to challenge Sen. Dawson Hodgson, whose district now includes a stretch of that town in addition to East Greenwich and North Kingstown.

— Yes, financial problems of cities and towns is a huge issue for Rhode Island. But so is this one: the number of people who are graduating from high school is dropping. According to a study, RI is one of 10 states in the country to see a decline and, at 75.3 percent, we’re not below the national average.

— Dan McGowan lists the 15 most influential political operatives in Rhode Island. Congrats to Kate Brock, of Ocean State Action, whom McGowan calls, “the face of the progressive left in Rhode Island.” Ray Sullivan, of Marriage Equality Rhode Island, also makes McGowan’s list.

— Did you see where Ernie Almonte said he was thinking of running for governor but doesn’t know if he’ll run as a Republican or as a Democrat? This is the problem with the Democratic party in Rhode Island – it really isn’t all that different from the GOP.

RI Mulls Reducing Payday Loan APR: 260% to 36%


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Rep. FRank Ferri testifies at a hearing last night on his bill that would reform paypay loans in RI. In the background is former Bill Murphy, former House speaker, who opposes the bill.

Roger Paquette works at a bowling alley in Johnston and when needed some quick cash and he didn’t know where to turn. So he took out what’s known as a payday loan. It’s a decision he now regrets, he told a House subcommittee on Wednesday.

“It’s not good,” he said. “There’s no easy way out of it, unless you get lucky.”

Paquette was eventually able to clear his debt. But not before he paid $500 in fees on his $300 loan.

His employer, Rep. Frank Ferri, a Warwick Democrat, decided to do something about it. He has sponsored legislation that would trim the annual percentage rate for a payday loan in Rhode Island from a whopping 260 percent back to the previous rate of 36 percent.

“It’s a debt trap,” Ferri said, prior to the hearing.

Ferri said the rate used to be 36 percent, before the general assembly passed a law that effectively raised the rate to 391 percent. In 2005, it was lowered all the way down to 260 percent. That’s $1,300 in interest on a loan of $500, the maximum amount allowable under by law.

There were 143,201 payday loans made in Rhode Island last year for a total of more than $53 million, said Margaux Morisseau, with NeighborWorks Blackstone River Valley, a community-building non-profit based in Woonsocket.Only 2 percent of payday loans she said go to people who pay them all back and don’t take out another one.

“Payday lenders annually drain millions of dollars from Rhode Island families, mostly to out-of-state payday chains,” she told the House committee.

Morisseau said payday loans shops typically set up in the poorest areas of the state. They are illegal for military personnel, she said, as per a bill sponsored by Rhode Island’s own Senator Jack Reed because, as she put it, “they are seen as a threat to our national security.” Because these loans turn over quickly and carry such a high interest rate, they can be very stressful for those who choose them, she added.

Industry insiders at the hearing last night say such loans are the only way some people can get quick access to cash in an emergency. So did Rep. Peter Petrarca, D-Cranston, who exchanged heated words with Ferri.

But Moriseau said at last night’s hearing, “Safe, responsible, alternative products are now available to consumers. Nonprofits and Credit Unions have created easily accessed products that meet the needs of consumers at a reasonable interest rate.”

In an email, she provided these example:

  •  Capitol Good Fund lends $2000 loans at 15% APR.  Their customers have taken out CGF loans to help get out of the payday lending debt trap.
  • West Elmwood Housing Development Corporation is piloting the “Neighborhood Loan Store” that makes loans up to $1500 at 18-25% APR.
  • Navigant Credit Union also recently launched “Smart Start” a safe, easily accessed alternative product at all of their branches. They loan $600, with a 90 day term, no credit required.

Woonsocket, and How Chafee’s Muni Bill Can Help


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Woonsocket High School (photo courtesy of Woonsocket School District)
Woonsocket High School (photo courtesy of Woonsocket School District)
Woonsocket High School (photo courtesy of Woonsocket School District)

The Woonsocket School Committee voted last night not to close schools early, which is good news all around. But guess what? Schools were never going to close early. If Woonsocket can’t come up with the money it needs to run them by April 5, which it probably cannot, the state will step in and keep the schools running. The state Constitution says it has to.

Furthermore, under the new state education funding formula, RIDE has all but admitted that it shortchanged the cash-strapped city under the previous funding formula to the tune of $4.6 million, an amount the state will pay to the school district over the next seven years. Woonsocket, along with Pawtucket, is suing the state saying it needs that money right away. Obviously, this isn’t a bluff.

Yes, Woonsocket could have managed its finances better. A lot better. But the state mismanaged how it funds education, too. Couple these blunders with the drastic cuts to cities and towns that occurred over the past several years and you have the recipe for disaster that was cooked for Woonsocket.

Governor Chafee’s municipal aid bill will help. It will not only allow cities and towns to save money by cutting annual pension increases for retirees, but Chafee said on Tuesday it will also allow Woonsocket (and Providence, Pawtucket and West Warwick) to ignore some of the state mandates that drive up expenses.

Providence Journal State House scribe Randal Edgar, who evidently obtained a copy of the legislation, has a little more on what those are: mayors and managers would be given the power to veto line items in school budgets; teacher pay increases will be suspended, bus monitors can be replaced with cameras and allow those communities to stop busing students to private schools.

But at some point, and hopefully sooner rather than later, this state has to come to terms with the fact that top-down policies adopted during the Carcieri era, and a seemingly utter disdain for its poorest communities, has created this problem to a far greater degree than have unfunded pension liabilities.

Lawsuit vs. State Could Cut Woonsocket Deficit in Half


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Woonsocket High School (photo courtesy of Woonsocket School District)

Woonsocket High School (photo courtesy of Woonsocket School District)Woonsocket may be taking heat for saying it might have to close schools, but the School District has a mighty strong hand in its negotiations with the state on how to close the budget deficit.

The Department of Education plans to pay Woonsocket $4.3 million in state aid that the cash-strapped city didn’t receive under the previous school funding formula, said Elliot Krieger, a spokesperson with RIDE.

“Woonsocket was one of the underfunded districts,” Krieger said.

Under the new formula, designed in part to re-compensate the money that some districts didn’t receive under the previous formula, the $4.3 million is to be “phased in” over the next seven years, he said.

“It would too much of a shock to the system to do it all in one year,” Krieger said.

But Woonsocket and Pawtucket are suing the state in Superior Court, contending that spreading the payments out over seven years is unfair to them given their fiscal constraints.

“The problem is with the funding formula,” said education lawyer Stephen Robinson, who is bringing the suit against the state. He represents school districts in Portsmouth, Pawtucket, Central Falls and Tiverton. “It’s not fair to the poor urban districts. The reality is Woonsocket does not have fiscal capacity to fund [education].”

While even if Robinson wins the case and Woonsocket gets all the money it is owed it still wouldn’t close the school district’s deficit of $10 million, the city does hold another ace in its hand. In Rhode Island, the state has ultimate responsibility over public education.

“It’s in Article 12 of the state Constitution,” said Tim Duffy, executive director of the Rhode Island Association of School Committees. “The state and federal government have now articulated standards that schools need to meet. In order to meet those standards they need to have funds to meet them.”

Duffy said the state could ask Woonsocket to implement a supplemental tax increase. But given that Governor Chafee said yesterday that state aid cuts to cities and towns disproportionately hurt poor urban communities like Woonsocket, it might not be the way he chooses to handle the matter.

Christine Hunsinger, a spokesperson for Chafee said Rosemary Booth Gallogly is working with Woonsocket Mayor Leo Fontaine and the city council to “better understand what potential options are out there.”

According to Chris Celeste, Woonsocket’s tax assessor, the city has raised property taxes in each of the last three years.In 2008-09, property taxes went up 4.75 percent, which was the maximum increase under state law. In 2009-10, the maximum increase was 4.5 percent and taxes went up “right about that,” he said. In 2010-11, property taxes went up 4.16 percent with the maximum increase being 4.25 percent.

Congress Needs to Start Working to Put the American People Back to Work


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When I decided to run for Congress in 2010, I began my campaign with the conviction that no issue was more important than putting men and women across Rhode Island back to work.

For too long, national policies had left behind far too many working families in our state. In cities such as Woonsocket, factory employees who worked hard their whole lives were left to fend for themselves because of tax incentives for corporations to ship jobs overseas. Students at schools such as Rhode Island College were anxious that they wouldn’t be able to find work even after they earned their degrees. And small-business owners from Smithfield to Newport were still unable to get access to the capital they needed to support their companies.

Of course, Rhode Islanders certainly weren’t alone in their frustration — the same sentiments were held by men and women across our country. But as I begin the second year of my first term in Congress, I am struck by how little progress has been made to put our country back on the right track.

Since assuming the majority last year, the House Republican leadership has repeatedly missed opportunities to get things done and instead  has focused on extreme legislation with little or no chance of passing in the Senate. Making an ideological point has trumped getting things done. Several times during the past year, Republican leaders pushed our country to the brink — bowing to tea party pressure to resist any compromise even as unemployment remained high and Congressional approval plunged to record lows.

But following public rejection of their most recent effort to end a middle-class tax cut and unemployment benefits, I hope that my Republican colleagues will recognize that the time has come to get back to work and take real steps to strengthen our economy and get Americans back to work.

There are several bills pending before House committees that would immediately benefit our economy, and the underlying goals of these bills enjoy bipartisan support.

Rep. Rosa DeLauro’s (D-Conn.) National Infrastructure Development Bank Act would help leverage public and private funding for infrastructure projects — creating jobs and enabling us to rebuild crumbling bridges and roads across our country. Rep. Dan Lipinski’s (D-Ill.) National Manufacturing Strategy Act would direct the president to establish a manufacturing strategy for our country. Rep.Heath Shuler’s (D-N.C.) tax legislation would make the research and development tax credit permanent, encouraging small-business owners to propose and commercialize innovative ideas.

Earlier this year, I introduced the Make It in America Block Grant Program Act, a bill that has garnered 37 House co-sponsors, and a companion bill was introduced by Sen. Kirsten Gillibrand (D-N.Y.). This legislation would make investments, administered through the Commerce Department, to help small and medium-sized manufacturers retool their factories, retrain workers and acquire the capital they need to compete. American manufacturing helped push our country ahead in the 20th century, and making it a national priority again is key to revitalizing our economy.

I return to Washington, D.C., even more mindful of the urgency of taking action to improve our nation’s economy and the lives of those I have the honor of representing and more aware of the obstacles that continue to impede progress for everyday Americans.

A willingness to cross party lines and put pragmatism ahead of partisanship has been missing for far too long in Washington. But with millions of our friends, family members and neighbors still out of work, it has never been more important for Congress to get to work so that Americans can get back to work. We can’t wait.

Rep. David Cicilline is a member of the Small Business and the Foreign Affairs committees.

Originally published in Roll Call.


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